2QFY2012 Result Update | Telecom

November 4, 2011

Bharti Airtel
Performance highlights
(` cr) Net sales EBITDA EBITDA margin (%) PAT 2QFY12 17,276 5,815 33.7 1,027 1QFY12 16,983 5,706 33.6 1,215 % chg (qoq) 1.7 1.9 6bp (15.5) 2QFY11 15,215 5,121 33.7 1,662 % chg (yoy) 13.5 13.5 0bp (38.2)

ACCUMULATE
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Telecom 151,125 0.6 445/304 480,795 5 17,563 5,284 BRTI.BO BHARTI.IN

`398 `425
12 Months

Source: Company, Angel Research

Bharti Airtel (Bharti) reported a mixed performance for 2QFY2012. The company’s revenue came in-line with our expectations, while PAT came below expectations due to higher interest and forex loss. Also, KPIs of India business declined during the quarter, leading to lower revenue growth in India mobile business. Bharti emerged as the first-mover in undertaking price increases in prepaid call charges, the full impact of which will flow from 3QFY2012 and will aid the company’s average revenue per minute (ARPM). We maintain our Accumulate rating on the stock. Result highlights: For 2QFY2012, Bharti’s consolidated revenue stood at `17,276cr (1.7% qoq growth). Revenue from mobile services for India came in at `9,783cr, down 0.6% qoq (lower growth than estimated), due to a 4.9% qoq decline in minutes of usage (MOU) to 423min, as call drop rates are higher in 2Q. However, ARPM grew by 0.9% qoq to `0.43/min. Zain Africa’s contribution to revenue stood at `4,591cr, up 4.9% qoq, because of 5.5% qoq growth in MOU to 128min, whereas ARPM declined by 5.4% qoq to 5.7US¢/min. EBITDA margin of mobile India as well as Africa business decreased by 50bp and 45bp qoq to 33.7% and 26.7%, respectively. Consolidated EBITDA margin for Bharti stood at 33.7%, almost flat qoq. Net profit stood at `1,027cr, down 15.5% qoq,

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 68.3 8.7 17.1 5.8

negatively affected by higher interest cost of `1,318cr, which includes forex loss of `239cr.
Outlook and valuation: Bharti is on its way to turnaround its Africa business by bringing down its network operating expenditure by outsourcing various network-related developments. Thus, we expect the combination of improving KPIs and cost efficiencies to drive the EBITDA margin for the Africa business to 26.6% and 27.0% by FY2012 and FY2013, respectively. We expect Bharti’s Indian and African mobile subscriber base to grow at a CAGR of 8.2% and 16.9% over FY2011-13E to 190.0mn and 60.4mn subscribers, respectively. We maintain our Accumulate rating on the stock with a target price of `425, valuing Bharti at EV/EBITDA of 7.0x FY2013E EBITDA. Key financials (Consolidated, IFRS)
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Abs. (%) Sensex Bharti Airtel

3m (6.0)

1yr 21.9

3yr 65.2 11.0

(0.7) (15.9)

FY2009 36,962 36.8 8,615 27.3 41.4 22.7 17.5 5.0 28.3 23.3 4.3 10.3

FY2010 41,847 13.2 9,108 5.7 40.3 24.0 16.6 3.6 21.6 17.6 3.7 9.1

FY2011 59,467 42.1 6,035 (33.7) 33.7 15.9 25.0 3.1 12.4 8.2 3.6 10.5

FY2012E 72,089 21.2 5,726 (5.1) 34.0 15.1 26.4 2.8 10.6 9.3 2.9 8.7

FY2013E 83,165 15.4 9,412 64.4 35.9 24.8 16.1 2.4 14.9 12.7 2.4 6.7

Srishti Anand
022-39357800 Ext: 6820 srishti.anand@angelbroking.com

Ankita Somani
022-39357800 Ext: 6819 ankita.somani@angelbroking.com

Please refer to important disclosures at the end of this report

1

4 % chg (yoy) 24.2 30.4) 91.5 237.659 0 (2) 1.9 1QFY12 16.0 13.4 7.1 18.513 490 1. Angel Research 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy) 9.6 9.461 5.9 0.2 1.983 (0.5) (15.3 12.1) (111)bp (306)bp (582)bp Exhibit 2: Actual vs.2) (34.6 15.7 33. PAT EPS (`) EBITDA margin (%) EBIT margin (%) PAT margin (%) Source: Company.010 752 (23) 72 4.9 12.2) (55. Bharti reported moderate revenue growth of 1.1 4.7 10.0 34.446 17.4 3.027 2.7 15.042 2.5 13.983 11.937 17.706 3.6) 4.1 107bp (15.526 5.2 33.104 2.1) (13.215 11.8 (12.9 33.2 % chg (qoq) 1.259 22.041 2.119 1.521 6.6 (25.805 3.8 6.5 1HFY11 27.5 13.116 226 1.1 (32.091 32.228 (14) 2.208 % Var.7) (15.2 6.974 3.7 8.276 9.0 20.738 11.815 3.7) (209.719 514 1.0 4.7% qoq.410 (7) 13 3.6 1.315 5.7 1.7 1. Exhibit 3: Revenue break-up (Business segment wise) Business segment (` cr) Mobile services–India & South Asia Mobile services–Africa Telemedia services Enterprise services Passive infrastructure services Others Eliminations Net revenue Source: Company.0 33.591 953 1.277 5.5 November 4.353 943 3.5 3. with consolidated revenue coming in at `17.2) (54.184 2.7) (38.5 5.1) (15.004 2.9 162.5 3.215 10.0) Mixed performance For 2QFY2012.840 4.232 1.911 9.377 406 1.131 2. IFRS) (` cr) Net revenue Operating expenditure EBITDA Depreciation & amortization EBIT Interest charges Non operating expenditure Other income PBT Income tax PAT Share in earnings of associate Minority Interest Adj.9 % chg (yoy) 13.7 16.6) 0bp (148)bp (496)bp 1HFY12 34.242 5.776 15. 2011 2 .215 3.027 Estimate 17.6 15.5 23. Angel Research 2QFY12 17.023 (4) 1.205 (10) 1.7 18.7) 6.276 11. 1.9 1. as 2Q is seasonally a weak quarter because of the rainy season.0) (4.8 27.3 79.Bharti Airtel | 2QFY2012 Result Update Exhibit 1: 2QFY2012 – Financial performance (Consolidated.3 (38.206 1.277 378 1.227 568 1.1) (34. Angel estimates (` cr) Net sales EBITDA margin (%) PAT Source: Company.121 2.404 9. Angel Research Actual 17.891 912 1.2 5.783 4.7 2.8 39.5 (34.094 5.579 2.631 1.877 16.2 7.4) 6bp 7bp (121)bp 4QFY11 15.296cr.662 6.542 332 0 17 2.378 946 1.7 1.276 33.535 4.574 855 1.

1) 0. November 4.9) (%) (%) 0 (2) (4. however. In 2QFY2012.7 (0.8) (9.4mn subscribers.6 14.8) (4.1) (0. Exhibit 4: Trend in MOU (qoq) 500 480 460 4. aided by a 5.5) (4) (6) (8) 11 11. up 4.8) 2QFY12 (4) 3 .7) (`/month) (0. net subscriber addition was strong for Zain Africa at 2.0US¢/min in 1QFY2012.8 11.9) (5.9% qoq to 423min. below our expectation due to the higher-than-expected decline in MOU by 4. ARPM grew by 0.5) (1.6) (4. Angel Research Source: Company.9) (2.6% qoq to `9. This negatively affected the company’s average revenue per user (ARPU).0) 250 (1.43/min. Angel Research Source: Company. ARPM slipped by 5.8mn.8 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 MoU qoq growth VAS share Source: Company.1mn.591cr.6) (6.0 8 5 9. However.8) 0 (`/min) (%) 0.4) 150 (8.3) (3. taking its total subscriber base to 172. In 2QFY2012.5% in 2QFY2012 from 14.4 (4) 200 (9. which decreased to 14.6) (8) (12) 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 ARPM qoq growth ARPU qoq growth Source: Company.8) 6 4 2 Exhibit 5: Trend in VAS share (qoq) 17 14 13.9) (1.4% qoq to 5.8 15. the company added 3. taking its subscriber base to 48.6) (7. Revenue of mobile – India and South Asia – business was also impacted because of the slight decline in value-added services (VAS) share (even when 3G services are launched in all the circles).0 12.7 11.2 (8) (12) 0 4 Exhibit 7: Trend in ARPU (qoq) 300 (2.6) (2. Angel Research Exhibit 6: Trend in ARPM (qoq) 0. Zain Africa’s revenue stood at `4.9% qoq.Bharti Airtel | 2QFY2012 Result Update Mobile business – India and South Asia: Revenue of the mobile business – India and South Asia – declined marginally by 0.9% qoq to `0.6mn subscribers in this segment.6 14. Angel Research Mobile – Africa business: For 2QFY2012.7US¢/min as against 6.5 (mins) 440 420 400 380 (5.9 2.9 (0. as call drop rates are higher in 2Q due to the rainy season.4) (0.5% qoq increase in MOU to 128min.1) (0. 2011 2QFY12 (%) (3.783cr.6 0.6% in 1QFY2012.8% qoq to `183/month. pulling it down by 3.

1% qoq to `2.1% of the revenue of telemedia services is from data services (non voice-based services).6 2QFY11 6.1% qoq to `1. Angel Research ARPU Enterprise services: Revenue of the enterprise services segment grew by 6. Tenancy ratio improved to 1.4 40. Passive infrastructure services: Revenue growth in the passive infrastructure services segment stood at 6.0 121 7. Exhibit 9: Telemedia – Subscriber base and ARPU trend 3. as now 52.6 112 7.6) 14. Angel Research 1QFY12 6.4 Telemedia services: Revenue of the telemedia business grew by merely 0.5 (0.585 in 2QFY2012 vs.1 % chg yoy (13. 25.5) 20.87 in 1QFY2012.500 3.377cr.3 48.8 5. 2011 2QFY12 (`) 934 955 1000 4 .3% qoq growth in ARPU to `955 in 2QFY2012 from `952 in 1QFY2012. November 4. However.1) 4. net subscriber addition again stood very sluggish at 6.000 1.104cr in 2QFY2012.000 989 964 937 961 1200 (in 000's) 954 934 2.818 in 1QFY2012.Bharti Airtel | 2QFY2012 Result Update Exhibit 8: Operating metrics for Zain Africa 2QFY12 ARPM (US¢/min) MOU (min) ARPU (US$/month) Subscriber base (mn) Source: Company.0 (1.500 952 800 600 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 Telemedia subscribers (in 000's ) Source: Company.3 46.4) 5.8% qoq to `953cr on the back of 0.7 128 7.89 in 2QFY2012 from 1.500 2.3 % chg qoq (5.

2%.9 37. due to the strong increase in the EBITDA margin of Digital TV services. at the operational front.Bharti Airtel | 2QFY2012 Result Update Exhibit 10: Trend in passive infrastructure business (qoq) 1.2 37.1 2QFY12 33. However.6 1.7 21. of towers (in 00's) 900 600 300 0 1.8 1. passive infrastructure business and mobile – Africa business declined by 50bp.7 30 34.4 1.7 4QFY11 1QFY12 Mobile services-India & South Asia Enterprise services Source: Company. 2011 Tenancy (x) 1. respectively.0 1.78 1.7% in 2QFY2012.1 44.80 1.65 1.2 37.2 45. 25bp and 45bp on a qoq basis to 33.6 38.2 22.73 1.5% and 26.87 1.89 2.75 1.65 1.5 33.0 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 Bharti Infratel (BTIL) Source: Company. Angel Research Telemedia services Passive infrastructure services November 4.1 35.68 1. Bharti’s consolidated EBITDA margin almost remained flat qoq at 33.200 No.83 1.62 1.5 2QFY12 20 24.5 44.77 1.71 1.0 37.2 1. EBITDA margin of mobile – India and South Asia – business.7%.6 45. Exhibit 11: Segment-wise EBITDA margin trend (qoq) 50 44. Angel Research Indus BTIL tenancy Indus tenancy Margins remain flat During the quarter.5 35.3 34.9 21. 37.79 5 .7 2QFY11 3QFY11 25.0 40 (%) 46.5 35.5 1QFY11 24.

6 1QFY11 8.6 (%) 15. Angel Research qoq growth Exhibit 13: Opex break-up (qoq) 100 80 60 36.9) (0.8 4.50/min by the end of FY2012 and FY2013.3) (4. On the domestic business front.9 5. respectively. We expect this to gradually push the ARPM upwards from `0.15 (10) 0.6 22.2 2QFY12 EBITDA margin Access charges Network costs Source: Company. negatively impacted by higher interest cost of `1.6 33.5) (4.5) 0 (%) 0.5% qoq.8 12. the company has managed to increase its MOU for Africa to 128min in 2QFY2012 from 115min in 4QFY2011 and is expecting prices to remain stable in the African market.1 33.43/min in 2QFY2012 to `0.0% by FY2012 and FY2013.6 1QFY12 S.4 2QFY11 5.4 16. Bharti’s consolidated net profit stood at `1.7 5.7 17.3 11.2) 10 0.0mn–2. Thus.1mn subscribers per quarter in its Africa business. the company undertook price hikes of 20% for on-net prepaid calls for all its 22 circles. we expect the combination of improving KPIs and cost efficiencies to drive the EBITDA margin of the Africa business to 26.2 21.318cr.452/min and `0.10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 (20) EPM Source: Company.5 21.G&A cost 8.6% and 27. we expect Bharti’s Indian and November 4.7 21.8 12.9 13. In terms of KPIs.4 12.5 33.8) (14.8) (11.2) (6.25 1. down 15.5 13.8 (1. which includes forex loss of `239cr.2 8.20 (`/min) (2.3 4QFY11 Employee cost 8.7 19.Bharti Airtel | 2QFY2012 Result Update Exhibit 12: Trend in EPM – Mobile India and South Asia (qoq) 0.6 5.3 40 20 0 9.6 18. The company has been consistently adding 2.6 21.7 33. Hence.8 22. 2011 6 . Outlook and valuation Bharti is on its way to turnaround its Africa business by bringing down its network operating expenditure by outsourcing various network-related developments.7 31. respectively.6 17.9 3QFY11 License fee 8.027cr.1 5. Angel Research During the quarter.

262 425 November 4.4mn subscribers. Angel Research FY2013E 29. In addition. and 3) delay in return on investments made in 3G launches.38x to 1.000 0 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-1 EV 17 14 11 8 5 Source: Company.240 54.000 375. still loom.0x FY2013E. However. 2011 7 .000 75.Bharti Airtel | 2QFY2012 Result Update African mobile subscriber base to grow at a CAGR of 8. and we expect it to further trend downwards to 1. we prefer Bharti in the Indian telecom space and maintain our Accumulate recommendation on the stock with a target price of `425.000 150. The strong cashflow generation on account of 1) the expected improvement in operating profitability due to price increases in the domestic market and cost-efficiency measures in Africa business and 2) lower capex needs of ~US$3bn annually in future are expected to help the company’s debt repayment abilities.0mn and 60. respectively.2x and 0. Angel Research Exhibit 15: Valuation (` cr) EBITDA Target EV/EBITDA (x) Target EV Debt Cash. respectively.0 209.891 7. The company has brought down its net debt-to-equity from 1. we expect increasing VAS share due to surging demand for non-SMS data services to further comfort the company’s ARPM. 2) pricing scenario in Africa operations.33x in one year’s time.2% and 16. Bharti’s MOU is expected to remain soft because of the various free-minute packages offered by competition as well as some moderation in volumes due to increased rates. valuing Bharti at EV/EBITDA of 7.9% over FY2011–13E to 190.291 6.000 450.000 225.000 EV (`cr) 300. key downside risks such as 1) uncertainty in regulatory outcome. cash equivalent and short-term liquid investments Target mcap Target price (`) Source: Company.9x by the end of FY2012 and FY2013.312 161. Exhibit 14: One-year forward EV/EBITDA (x) 525. Thus.

7 4.6 0.9 (0. price (`) 425 Upside (%) 6. Angel Research Exhibit 18: Recommendation summary Company Bharti Airtel Idea Cellular RCom Reco.165 29.4 2.2 APRM (`/min) Subscriber base (mn) Source: Company. Angel Research 0.43 162.726 Variation (%) 1.3 (0.1 Source: Company.522 12.0 Exhibit 17: Change in estimates FY2012 Parameter (` cr) Net revenue EBITDA PBT Tax PAT Earlier estimates 70.3) 6.0 FY2011-13E EPS CAGR (%) 24.503 3.125 9.1 (2.0) (0.Bharti Airtel | 2QFY2012 Result Update Exhibit 16: Key assumptions Particulars MOU (min) VAS share in voice revenue (%) FY2010 468 0.7 13.820 1.2 1.5 FY2013E P/E (x) 16.2 3.838 23.6) Earlier estimates 82. 2011 8 .2 FY2013E RoE (%) 14.1 27.793 2.501 3.218 29.2 0.7 10.099 5.891 12.870 7.3 0.50 190.126 9.412 Variation (%) 1.6 (0.45 179.0 FY2013E 420 15. Angel Research November 4.8 2.0) 0.397 FY2013 Revised estimates 83.53 127.2 Source: Company.8 FY2013E P/BV (x) 2.978 5.5 FY2011 449 13.3 FY2012E 428 15. Accumulate Neutral Neutral CMP (`) 398 98 83 Tgt.089 24.1 0.9 8.879 Revised estimates 72.8 13.4) FY2013E RoCE (%) 12.491 7.

827 10.9 14.7 13. % of net sales License fee % of net sales Other expenses Total expenditure % of net sales EBITDA % of net sales Dep.6 15.862 (71) 176 8.099 26.149 15.0 12.9 FY2012E 72.0 24.7 10.936 16.274 64.284 (18) 10.088 20.4 6.6 9.125 25.5 7.467 7.666 1.778 23.9 5.802 21.753 9.615 22.3 5.878 11.166 8.589 18 70 10.3 6.726 15.035 15.793 2.513 24.640 1.206 111 9. and amortization Non operating expenses EBIT Interest charges Other income.501 3.8 November 4.1 3.3 17.345 12.313 41.891 35.1 29.376 (36) 9.074 8.3 4.290 14.182 129 7.8 7.523 662 6.7 16.035 33.596 21.694 (32) 5.295 187 9. PAT EPS (`) FY2009 36.993 59.762 1.599 66.719 2.820 7.786 13.5 18.0 FY2011 59.7 FY2010 41.242 12.200 8.3 20.1 FY2013E 83. IFRS) Y/E March (` cr) Net sales Roaming and access charges % of net sales Network operating exp.481 10. net Profit before tax Provision for tax % of PBT PAT Share in earnings of associate Minority interest Adj.8 5.165 11.743 3.649 58.432 66.4 4.854 40.912 21.533 2.2 5.089 9. 2011 9 .088 9.108 24.6 12.7 8.887 (148) 6.499 12.993 21.774 39.0 9.010 53.811 47.758 22 10.6 15.847 4.9 6.491 34.Bharti Airtel | 2QFY2012 Result Update Profit and Loss account (Consolidated.962 5.103 13.412 24.6 15.613 3.9 8.

725 21.918 622 214 5.provisions Net current assets Net deferred tax Miscellaneous exp.291 3.841 41 (2.790 58. shareholders’ funds Minority interest Secured loans Unsecured loans Total debt Other liabilities Total liabilities Assets Gross block Acc.970 5.962) 4.358 3.545 68.399 6.315 400 7.481 11.070 5.975 4.293 36.868 48.200 1. non-current assets Investments Inventories Sundry debtors Cash and equivalents Other current asst Total current assets Less: .914 4.598 1.899 52.300 60.791 47.665 117.118 63.234 8.194 2.493 958 3.795 14.732 1.671 4.049 2.086) 6.350) 1.142 63.381 8.959 1.532 2.042 10.791 39.530 1.161 1.500 123.024 45.current liab.571 2.496 30.Bharti Airtel | 2QFY2012 Result Update Balance sheet (Consolidated.810 31.767 2.585 28.394 1.530 122.691 3.552 10.147 2.016 2. Total assets 54.263 5.155 79 (4.236 48 3.212 96. 2011 10 . depreciation Net block Goodwill Oth.272 64.898 28.249 60.899 46.036 3.430 118 (17.197 153 (16.981 14.315 350 6.853 1.506 117.096 63.856 53.192 1.694 64. IFRS) Y/E March (` cr) Liabilities Share capital Reserves and surplus Tot.190 5.418 17.921 10.805 96 2.150 54.880 1.998 6.668 65.437 61.462 48.421 14.295 42.989 1.212 1.653 32.615 15.000 124.790 44.825 5.000 3.816 45.532 10.496 54.899 61.913 1.602 138 (18.529 8.598 FY2009 FY2010 FY2011 FY2012E FY2013E November 4.899 40.067 40.057) 8.161 69.619) 1.115 6.507 124.959 112.921 20. Less:.245 63.044 123.

970 (2.793 12.501 (4.012 958 1.570) 2.742 129 17.572 FY2013E 12. actv.665) 444 943 1.854) 11.186) (10.099) 18.778) 16.115 3.098 FY2012E 7.532 (3.610 998 24.671 (2.944 3.980) 373 (692) (2.299 437 678 1.274) (19.085) (57.Bharti Airtel | 2QFY2012 Result Update Cash flow statement (Consolidated.000) 358 (1.743) 4.345) 15.666 14.136 (27.970 4.192 1.872 (1.571 6. Cash generated/(utilized) Cash at start of the year Cash at end of the year (3.028 1.125) 23.056) 4.284 16. tax asset (Inc)/Dec in minority interest (Inc)/Dec in oth.174 272 297 444 2.038 30.733 (13. non-curr.014 215 (514) (13.771 4.136 19.671 20.608) (1.523 (10.620 FY2010 10.130 (635) 444 51.308) 3.753 14.400) 36 500 444 (10.020 32 (1.532 (1.878 20.998 FY2009 7.501 14.609) 1.529 1.418 1.257) 328 (94) (83.532 958 (3.536 10.650 (3. 2011 11 . (Inc)/Dec in fixed assets (Inc)/Dec in intangibles (Inc)/Dec in investments (Inc)/Dec in net dfr.854 70 16. ast.650 26.537) (8) (11.758 12.755 (1.249) 1.431) (1.001) (66) (1.708 (15.628) 2.237) 51.924 (1.481 1.766 (14. Inc/(Dec) in debt Inc/(Dec) in equity/premium Others Dividends Cash flow from financing actv.293 1. IFRS) Y/E March (` cr) Pretax profit from operations Depreciation Expenses (deferred)/written off Pre tax cash from operations Other income/prior period ad Net cash from operations Tax Cash profits (Inc)/Dec in Current assets Current liabilities Net trade working capital Cash flow from oper.282 (662) 13.331) (12) 1.458 (801) (17.633) (1.352) (851) 14.149 26.206 17.614 (3.115 2.484 444 4.690) 2.639) 3. Cash flow from investing actv.628) 17.953) (1.584 FY2011 7.612) 3.524 November 4.

0 1.5 33.5 3.0 111.0 0.6 15.3 0.1 20.3 0.8 17.7 1.9 42.0 165.9 1.1 23.Bharti Airtel | 2QFY2012 Result Update Key ratios Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BVPS Dividend yield EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS Cash EPS Dividend Book value DuPont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/Sales) Asset turnover ratio (Sales/Assets) Leverage ratio (Assets/Equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios (x) Asset turnover (fixed assets) Receivables days Payable days 0.1 23.2 0.8 10.8 1.3 0.8 FY2009 FY2010 FY2011 FY2012E FY2013E November 4.4 0.9 0.4 20.4 21.8 0.0 1.7 0.9 14.6 0.8 0.1 25.9 18.5 28.0 40. 2011 12 .2 8.0 128.1 2.7 30.2 0.8 12.1 18.5 2.2 0.8 1.6 12.7 11.8 26.8 28 158 0.3 1.7 35.2 27.2 4.4 12.0 143.6 0.3 9.9 11.1 2.7 34 250 26.1 10.8 0.8 0.1 60.5 7.3 0.7 50.8 18.2 4.5 13.3 3.8 0.7 11.9 27.6 34 250 0.2 2.5 7.0 0.2 1.1 24.6 2.2 11.1 10.9 15.2 15.0 0.7 1.6 1.2 3.9 28 256 0.1 1.3 0.0 3.7 34 263 0.0 0.5 3.2 3.9 0.1 5.0 9.8 10.8 0.0 22.3 1.0 80.

Analyst ownership of the stock 2. but we do not represent that it is accurate or complete and it should not be relied on as such. 2011 13 . nor make any representation or warranty. Broking relationship with company covered Bharti Airtel No No No No Note: We have not considered any Exposure below `1 lakh for Angel. as on the date of this report or in the past. from time to time. and its contents. and should consult their own advisors to determine the merits and risks of such an investment. Neither Angel Broking Limited. make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. and the company may or may not subscribe to all the views expressed within. or other reasons that prevent us from doing so. Angel and its Group companies ownership of the stock 3. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). compliance. we cannot testify. as opposed to focusing on a company's fundamentals and. nor its directors. its affiliates. Disclosure of Interest Statement 1.com DISCLAIMER This document is solely for the personal information of the recipient. its proprietary trading and investment businesses may. may not match with a report on a company's fundamentals. there may be regulatory. Also. redistributed or passed on. as this document is for general guidance only. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance. its Group companies and Directors Ratings (Returns): Buy (> 15%) Reduce (-5% to 15%) Accumulate (5% to 15%) Sell (< -15%) Neutral (-5 to 5%) November 4. Accordingly. information or data may not be reproduced. as such. Angel Broking Limited. Nothing in this document should be construed as investment or financial advice.angelbroking. Angel Broking Limited has not independently verified all the information contained within this document. Reports based on technical and derivative analysis center on studying charts of a stock's price movement. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved). The views contained in this document are those of the analyst.3935 7800 E-mail: research@angelbroking. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report. express or implied. outstanding positions and trading volume. The information in this document has been printed on the basis of publicly available information. Angel and its Group companies' Directors ownership of the stock 4. contents or data contained within this document. directly or indirectly. This document is being supplied to you solely for your information. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material. investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report.com Website: www. internal data and other reliable sources believed to be true. directors. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. and must not be singularly used as the basis of any investment decision. to the accuracy.Bharti Airtel | 2QFY2012 Result Update Research Team Tel: 022 .

Sign up to vote on this title
UsefulNot useful